Analysis Of Internal Fund Transfer Pricing System In Commercial Bank

With the rapid marketability of the interest rate, the commercial banks'fund management system is changing towards intensive management. It is an irresistible general trend to set up and strengthen the internal fund transfer pricing system, which comes to be the core task of asset and liability management for the commercial bank. The internal fund transfer pricing system is a kind of inner operation management form that the fund management centers and business operation units undertake all the cost and transfer the fund with the compensation so as to account the revenue or cost of fund, which is based on the demand in fund management and operation of the commercial bank. The internal fund transfer pricing system helps the banks realize the centralized management, and plays an important role in the conduction of the upper authorities'operation tactics, the regulation of the fund flow and volume between the upper and lower sectors, and the improvement of the bank's operation and management level. The system also has a great influence on optimizing the allocation of resources, controlling operating costs and interest rate risk, and improving operational efficiency. As a scientific management form to optimize the allocation of resources, the internal fund transfer pricing system has attracted widespread attention and study in the banking industry.This article begins with the research background, achievements and situation of the internal fund transfer pricing system, and then introduces the theoretical foundation and basic principle, and analyzes the ideas and methods in pricing internal transfer fund and some problems in the course of intensive management of fund. And also, the article tries to work out the concrete methods in pricing internal transfer fund and bring about the practical procedure and way of promotion, with the methods of the qualitative and quantities analysis, based on the principle of the internal fund transfer pricing as well as the comprehensive thinking of characteristics of business operation, demands of operation and management of the commercial banks and the situation of the financial market in china. At last, the article analyzes an actual case that commercial bank promotes internal fund transfer pricing system by implementing centralized fund management.